Agency Matched Book Repo – JVB provides cost effective leverage capability via the repo financing markets to REITS, insurance companies, banks, and other institutions that are looking to improve their costs of funding, liquidity, and yield enhancement. JVB’s repo desk is comprised of seasoned repo operators that have run successful trading desks in primary broker dealers and large asset management firms.
Clients leverage JVB’s capital markets expertise to increase profitability by:
- Efficiently hedging interest rate risk via the TBA GSE market
- Increasing the velocity of clients’ GSE pooling process through Gestational Repo Financing
- Improving trade execution for new production GSE pools
- Enhancing clients’ capital markets visibility through communication of market pricing, trade conditions, and updates regarding regulatory changes
Gestational Repo Financing – short term repo product that allows institutions seeking incremental yield to invest cash into a security that meets the definition of a “security” under Section 3(a)(10) of the Securities Act and Section 8-102 of the UCC and is deemed an investment security governed by Article 8 of the UCC. The GNMA security carries the full faith and credit of the U.S. Government, giving it a zero risk weighting. For the mortgage originator client, gestation repo brings capital markets financing capability to a client base that are otherwise beholden to bank controlled warehouse funding lines. Gestation repo also increases the velocity of the pooling capability for GNMA issuers, while at the same time reduces funding costs and improves the mortgage client’s cash position.